CHANA

CHANACHANA

Chana, also called Bengal gram or chick pea, is the premiere pulse crop in theIndian subcontinent. India is the largest consumer and producer of chana in theworld. The two popular varieties of chana in India are Desi and Kabuli. The desivariety is usually split and relatively small with thick seed coat. Kabuli is cream incolour, relatively large in size with thin seed coat.

Bengal gram is widely appreciated as health food. It is a protein rich supplement tocereal based diet in India where large sections of population are either vegetarianor cannot afford animal proteins.

Whole chana is split into chana dal and ground to make �our popularly calledbesan apart from being consumed in varied forms with daily Indian meals. Chanais a good source of carbohydrate, and protein.

USES AND NUTRITIONAL VALUEUSES AND NUTRITIONAL VALUE

CULTIVATION AND SEASONALITYCULTIVATION AND SEASONALITY

THE CROP CALENDAR

DOMESTIC SCENARIO

SHARE OF CHANA IN TOTAL PULSES PRODUCED BY VOLUME IN 2009-10

DOMESTIC SCENARIO

Chana constitutes 50 per cent of all pulses produced by volume in India

Chana is a Rabi crop sown during the winter months in India. Fertile sandy and loam soil with good drainage is required forcultivation. Cooler climate and low rainfall suits chana cultivation. The peak arrival period is March - April at the mandis inIndia.

Source: Ministry of Agriculture, GOINote: Data is fourth Advance Estimateby the Ministry

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Chana production has increased by 36 percent between 2004 and 2010 with 25 percent expansion in acreage and 9percent improvement in yield.The government has set a production target of 7.58 million tonnes for 2010-11.

Source: Ministry of Agriculture, Government of India** Area covered as on Jan 28th 2011*** Fourth advanced estimate as released in July 2011

Source: CMIE

STATES' SHARE IN PRODUCTION OF CHANA IN 2008-09

The export and import of chana by India has increased 116 percent and 20 percent respectively between 2005 and 2009

YEARLY IMPORT AND EXPORT OF CHANA-INDIA

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The Indian subcontinent led by India imports maximum volume of chana while Australia leads the list of countriesexporting chana

Source: Food and Agriculture Organization of the United Nations

In ation of chana prices was least amongst pulses and lower than food articles during 2010 .

Source: O€ce of the Economic Advisor, GOI

TOP IMPORTERS OF CHANA IN 2008

PRICE BEHAVIOUR

WHOLESALE PRICE INDEX OF CHANA VERSUS PULSES FAMILY AND FOOD ARTICLE

PRICE BEHAVIOUR

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INTERNATIONAL SCENARIOINTERNATIONAL SCENARIO

Originally from the Middle East, chana is grown throughout the semi arid regions of India and the Mediterranean. Apart fromIndia, the other major producers of desi chana areTurkey, Pakistan, and Australia

TOP CHANA PRODUCING COUNTRIES IN 2008

Source: Food and Agriculture Organization of the United Nations

T h e p r i c e b e h a v i o u r d e p e n d s o n i ne rt p l a y b e t w e e n d e m a n d a n d s u p p l y o f c h a n a . T h e m a i n f a c t o r s i m p a c t i n g d e m a n d a n d s u p p al y re a s f o l l o sw -

F l u ct u a t i o n s i n a re a p, ro d u tc i o na n d y i e l d

C a r y r o v e r s t o c a k n d i m p o t rs i m p a t ci n gt h es u p p l y

F a c t o r os fp ro d u tc i o ni n c l u d i n g r a i n f a l l

T h eM i n i m u Sm u p p ot P r r i c oe f ef re d b y t h eg o ve r n m e n t

R e t u r no sn c o m p e t i n g c ro p s

T h e m i n i m u sm u p p ot pr r i c e a s re a n n o u n c e d b y t h e c e nt r a gl o ve r n m e nw t i t ha v i e w t o e n s u e r r e m u n e r a t i v e p r i c e t so t h e f a r m e f ro s r t h e i r p ro d u c e o n t h e b a s i s o f t h e C o m m i s s i o n f o r A r g i c u l t u r a l C o s t s a n d P r i c e s ( C A C P ) r e c o m m e n d a t i o n s . T h e s e p r i c e a s re a n n o u n c e d a t t h e c o m m e n c e m e n o t f t h e s e a s o t n o e n a b lf ea r m e tr os p u r s u t eh e ie r f of rt s w i t ht h e a s s u r a n c e t h a t t h e p r i c e f sa r m e rr e s c e ie v w o u l d n o tb e b e l o wt h e l e ve l f i xe d b y t h e g o ve r n m e n t . T h e N a t i o n a l A g r i c u l t u r a l C o o p e r a t i v e M a kr e t i n F ge d e r a t i o n ( N A F E D ) i s t h e n o d a a l g e n y c f o r p ro c u e r m e n o t f p u l s e f sro m f a r m e r s . T h e g o ve r n m e rn a t i s e t d h e M S P f o r c h a n b a y 1 9 p e cr e nt i n 2 0 1 0 - 1o 1v e r t h e2 0 0 9 - 1l e0 ve l

MINIMUM SUPPORT PRICE OF CHANAMINIMUM SUPPORT PRICE OF CHANA

DalMiller Wholesaler

(Dal)

ConsumerRetailerAgent/Stockist Wholesaler

Farmer

VALUE CHAIN PARTICIPANTS IN TRADE OF CHANAVALUE CHAIN PARTICIPANTS IN TRADE OF CHANA

NCDEX, the leading agri futures exchange in the country, o!ers futures trading in chana. Futures contract in Chanacomplements the portfolio of a commodity investor and acts as a hedging tool for the value chain participants in the trade ofchana

CHANA @ NCDEXCHANA @ NCDEX

Source: Directorate of Economics & Statistics, GOI

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MINIMUM SUPPORT PRICE (RS/QTL) OF CHANA

PRICE DISCOVERY THROUGH CHANA FUTURES CONTRACT

The e cient price discovery through the futures contract on chana explains the accomplishment of this derivatives product.A close convergence off utures and spot prices of chana contract upon expiry illustrates the utility of this futures contract as ahedging instrument.

Source: NCDEX (Monthly volatility calculated on the basis of spot prices at basis centre)

The chana futures contract is an e€ective tool to manage price risk

Source: NCDEX

Source: NCDEX

TRADED VOLUME OF CHANA FUTURES ON NCDEX

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VOLATILITY IN SPOT PRICE OF CHANA IN 2010

Over the years, NCDEX chana contract has been able to build up signi cant interest among all market participants which isevident from the steady open interest of more than 200,000 MT during the entire nancial year 2010-11.

Source: NCDEX

Source: NCDEX

Source: NCDEX

AVERAGE MONTHLY OPEN INTEREST IN CHANA CONTRACT

MONTHLY RETURNS FROM CHANA CONTRACT

PHYSICAL DELIVERY OF CHANA ON NCDEX

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Final Settlement Price

The Final Settlement Price (FSP) shall be arrived at by taking the average of the last three days' la pstolledspot prices.

No. of active contracts As per launch calendar

Member's Position

Limit

100,000 MT for all contracts or 15% of the market-wide open position, whichever is higher. For near month contracts: Maximum of 20,000 MT or 15% of the market-wide near month open position,whichever is higher (The following limits would be applicable from one month prior to expiry date).

Client's Position

Limit

20,000 MTFor near month contracts: Maximum of 4,000 MT

Due Date/ ExpiryDate

20th day of the delivery month. If 20th happens to be a holiday, a Saturday or a Sunday then the due date shallbe the immediately preceding trading day of the Exchange, which is other than a Saturday

Opening of contracts Trading in any contract month will open on the 10th day of the month. If 10th day of the month happensto be a non-trading day, contracts would open on the next trading day.

Trading Hours

Delivery Logic

As per directions of the Forward Markets Commission from time to time, currently -Mondays through Fridays: 10:00 a.m. to 5:00 p.m.Saturdays: 10.00 a.m. to 2.00 p.m.The Exchange may vary the above timing with due notice.

Compulsory Delivery

Additional deliverycentres

Kantawalla Chana to be delivered only at Indore (up to the radius of 50 km from municipal limits) Desi Chana can also be delivered at Bikaner (up to the radius of 50 km from municipal limits)

Delivery center Desi Chana to be delivered at Delhi (up to the radius of 50 kms from the municipal limits )

Quantity variation +/-5%

Name of Commodity CHANA

Ticker symbol CHARJDDEL

Trading System NCDEX Trading System

Basis Desi ex-warehouse Delhi inclusive of all taxes and levies

Unit of trading 110 MT

Delivery unit 10 MT

Quotation/base value Rs per quintal

Tick size Re 1

Upon expiry of the contract all outstanding positions will result in delivery. The penalty structure forfailure to meet delivery obligations will be as per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008.

Closing of contract Upon the expiry of a contract all outstanding open positions would result in compulsory delivery

CONTRACT SPECIFICATIONS

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Quality Speci!cation Desi Chana Kantawalla chanaForeign Matter (Other than varietal admixture) 1% basis 1% basis

3% basis 3% basis2% basis 3% basis

10% basis 10% basis

3% max 3% max

3% basis (Weeviled 2% max.)

3% basis (Weeviled 2% max.)

Brokens, Splits

Damaged and Weeviled

Moisture

Varietal admixture

The material should be free of Mathara and Khesari and live infestation.

Green (Cotyledon colour), Immature, Shrunken, Shriveled Seeds

MAJOR MANDIS NEAR THE NCDEX'S DELIVERY CENTRES FOR CHANAMAJOR MANDIS NEAR THE NCDEX'S DELIVERY CENTRES FOR CHANA

For further details, please refer to the NCDEX website http://www.ncdex.comContact our Product Managers for any queries/information:

Sachin Purwar : 9999294456, Arun Yadav : 9930006791, Rohit Shukla : 9711371071